K tech santa clara 20131114 v1

Software ConvergenceDr. James C. (“Jim”) Spohrer

IBM Innovation Champion & Director, IBM Global University ProgramsKTECH, Santa Clara, CA, USA, Nov. 14, 2013

Foundations for Smarter Planet

Cloud

Social

Internet of Things

Mobile

Software Convergence• “Variations of Moore’s Law have been applied to improvement over

time in disk drive capacity, display resolution, network bandwidth and, most recently, energy consumption.9 In these and many other cases of digital improvement, doubling happens both quickly and reliably.”

• “It also seems that software can progress at least as fast as hardware does, at least in some domains. Computer scientist Martin Grötschel analyzed the speed with which a standard optimization problem could be solved by computers during 1988-2003. He documented a 43-million-fold improvement, which he broke down into two factors: faster processors and better algorithms embedded in software. Processor speeds improved by a factor of 1,000, but those gains were dwarfed by the algorithms, which got 43,000 times better over the same period.10”Brynjolfsson, E., & McAfee, A. (2012). Winning the Race With Ever-Smarter Machines.

MIT Sloan Management Review, 53(2), 53.

IBM Platforms for Entrepreneurs

• Smarter Cities Intelligent Operations Center Platform• IBM Watson & Cognitive Computing Platform• IBM UP helping university startups to scale-up (growth)04/11/2023

© IBM 2013 IBM University Programs worldwide accelerating regional

development (IBM UPward)4

Next Generation:T-Shaped Adaptive Innovators

Many disciplinesMany sectors

Many regions/cultures(understanding & communications)

Deep in one sector

Deep in one region/culture

Deep in one discipline

National Science FoundationA feature of a service system is the participation and cooperation of the customer in the service and its delivery. A service system then requires an integration of knowledge and technologies from a range of disciplines, often including engineering, computer science, social science, behavioral science, and cognitive science, paired with market knowledge to increase its social benefit.

Nano-Bio-Info-Cogno

Welcome to the new age ofplatform technologies and

smarter service systems for every sector of business and society

nested, networks systems

04/11/2023© IBM 2013 IBM University Programs

worldwide accelerating regional development (IBM UPward)

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What are the trends?

Digital ImmigrantBorn: 1988

Graduated College: 2012

Digital NativeBorn: 2012

Enters College: 2030

http://www.prlog.org/11878039-the-secrets-to-hiring-recent-college-graduates.jpg

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Transportation: Self-driving cars

Steve Mahan:Test “Driver”

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Water: Circular Economy

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Manufacturing: Circular Economy

Ryan Chin:Urban Mobility

Baxter: Building the Future

Maker-Bot: Replicator 2

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Energy: Artificial Leaf

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Technology: Cognitive Computing

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Example: Leading Through Connections with…Universities Collaborate with IBM Research to Design Watson for the Grand Challenge of Jeopardy !

Assisted in the development of the Open Advancement of Question-Answering Initiative (OAQA) architecture and methodology

Pioneered an online natural language question answering system called START, which provided the ability to answer questions with high precision using information from semi-structured and structured information repositories

Worked to extend the capabilities of Watson, with a focus on extensive common sense knowledge

Focused on large-scale information extraction, parsing, and knowledge inference technologies

Worked on a visualization component to visually explain to external audiences the massively parallel analytics skills it takes for the Watson computing system to break down a question and formulate a rapid and accurate response to rival a human brain

Provided technological advancement enabling a computing system to remember the full interaction, rather than treating every question like the first one - simulating a real dialogue

Explored advanced machine learning techniques along with rich text representations based on syntactic and semantic structures for the Watson’s optimization

Worked on information retrieval and text search technologies

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

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Buildings: Circular EconomyChina Broad Group:30 Stories in 15 Days

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Retail & Hospitality: Social Media

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Finance: Crowd Funding

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Health: Robotics & 3D Printing

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Education: Challenge-Based Sport

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Government: Parameterized Meta-Rules

• Innovativeness

• Equity

– Improveweakestlink

• Sustainability

• Resiliency

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Competitive Parity – Achieved.• The NFL touts parity—the idea

that any team can win on any given Sunday. But this year, parity has truly run wild.

• Through six weeks, 11 of the NFL's 32 teams are 3-3.

• The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation…

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2030 and Beyond…. Government, Health, Education, Finance, etc.

Universities Matter #1



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Japan

ChinaGermany

France

United KingdomItaly

Russia SpainBrazilCanada

IndiaMexico AustraliaSouth Korea

NetherlandsTurkey

Sweden

y = 0,7489x + 0,3534R² = 0,719

0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5 6 7 8 9

% g

loba

l G

DP

% top 500 universities

Nation’s % WW GDP and % Top 500 Universities (2009 Data)




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…But it can be costly, American student loan debt is over $900M




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“When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”



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IBM operates in 170 countries around the globe

Acquisitions contribute significantly to IBM’s growth ; ~120 acquisitions in last decade

2012 FinancialsRevenue - $ 104.5BNet Income - $ 17.6BEPS - $ 15.25 (10 yrs of

EPS d/digit growth)Net Cash - $18.2B

24% of IBMs revenue in Growth Market countries; growing at 7% ( @cc) in 2012

Number 1 in patent generation for 20 consecutive years ; 6,478 US patents awarded in 2012

More than 40% of IBMs workforce does business away from an office

5 Nobel Laureates10 time winner of the President’s National Medal of Technology & Innovation – latest for LASIK laser refractive surgical techniques

The Smartest Machine On Earth

100 Years of Business & Innovation in 2011

New Era in IBM’s Leadership

IBM Growth Initiatives

IBM has ~425,000 employees worldwide

Context: IBM 101

Why ISSIP? T-shapes for Teamwork

• Our world is becoming more interconnected and complex

• Yet most organizations operate is silos

• Most professional organizations do a great job of focusing on one discipline, function, or industry sector

ISSIP is a professional society designed to focus on the interconnected nature of value co-creation for smart service systems (tech, biz, social, etc.)

BREADTH

DE

PT

H

T-Shape professionals can innovate across traditional boundaries

ISSIP Ambassadors

• More than 15 Ambassadors and growing…

• Link ISSIP to other professional associations, research centers, conferences, etc.

• Help ISSIP co-sponsor activities in other conferences

more... http://www.issip.org/learningcenter/valuenetwork

/

http://www.issip.org/learningcenter/valuenetwork/



Service Systems Fundamental Abstraction of Service Science:ISSIP portal to Disciplines (23), Professional Associations (39), Journals (20), Conferences (31), Workshops (7)

IBM SSME Centennial Icon of Progress

Discipline Association

Marketing AMA

Operations Research INFORMS

InformationSystems

AIS

Computer Scienceand Engineering

ACM, IEEE

Human Factors AHFE

Operations Management

POMS

Systems Science ISSS

Design SDN

Systems Engineering IIE

… …

Serviceology SfS

(SSME+DAPP) ISSIP

The Well-Read Service Scientist(The top 300 papers – together over 100,000 citations)

• http://service-science.info/archives/2708

Service-Dominant Logic

Prof. Stephen VARGO Prof. Robert LUSCH

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of marketing, 1-17. (Oct. 2013, ~4500 citations)

Claude Frédéric Bastiat David Ricardo Colin Clark Richard Normann John Riordan

Service ThinkingSaperstein & Hastings: Book, Course, ISSIP Certificate

All value is co-created

Service systems we live and work in

Componentized business architecture

Global-mobile-social scalable platforms

Run-Transform-Innovate

Multi-sided metricsCVC Group, LLC 34

Holistic Service Systems (HSS)



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http://www.service-science.info/archives/1056

Nation

State/Province

City/Region

UniversityCollege

K-12

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits:Business Entrepreneurship

Non-profitsSocial Entrepreneurship

U-BEEJob Creator/Sustainer

U-BEEs = University-Based Entrepreneurial Ecosystems

“The future is already here (at universities),it is just not evenlydistributed.”

“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”

“Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) tothe people inside them. WS includes flows (transportation, water, food, energy, communications), development (buildings, retail ,finance, health, education), and governance (city, state, nation). ”

University Four Missions1. Learning2. Discovery3. Engagement4. Integration

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“Order of Magnitude” Observation:Modeling Holistic Service Systems

Level AKA ~No. People ~No. Entities Example

0. Individual Person 1 10,000,000,000 Jim

1. Family Household 10 1,000,000,000 Spohrer’s

2.Neighborhood Street 100 100,000,000 Kensington

3. Community Block 1000 10,000,000 Bird Land

4. Urban-Zone District 10,000 1,000,000 SC Unified

5. Urban-Center City 100,0000 100,000 Santa Clara

6.Metro-Region County 1,000,000 10,000 SC County

7. State Province 10,000,000 1,000 CA

8. Nation Country 100,000,000 100 USA

9. Continent Union 1,000,000,000 10 NAFTA

10. Planet World 10,000,000,000 1 UN

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What’s UP at IBM?

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Those in-the-know say, “IBM is helping to build a Smarter Planet…”

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Smarter Planet = Smarter Systems

INSTRUMENTED We now have the ability to

measure, sense and see the exact condition of practically everything.

INTERCONNECTED People, systems and objects

can communicate and interact with each other in

entirely new ways.

INTELLIGENT We can respond to changes

quickly and accurately, and get better results

by predicting and optimizing for future events.

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

IT NETWORKS

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City challenges

Ryan Chin:Smart Cities

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Smart Startup: Streetline

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Smart Neonatal ICU

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Land-population-energy-carbon

Carlo Ratti:Senseable Cities

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Four commandments for cities of the future: Eduardo Paes at TED2012

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SC IOC as a Platform for Innovation

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Identifies entrepreneurs developing businesses aligning with our Smarter Planet vision.

SmartCamp finalists raised more than $50m and received significant press in Wall Street Journal, Forbes and Bloomberg

in

Healthcare SmartCamp kickstart - Miami - May 15, 2012 Apply by April 27th

SmarterCities SmartCamp kickstart - New York - May 24, 2012 Apply by May 3rd

North America Regional SmartCamp - Boston - June 20 & 21, 2012 Apply by May 25th

apply now at www.ibm.com/isv/startup/smartcamp

Exclusive Networking andMentoring event

North America SmartCamp lead: Eric Apse, [email protected] Programs lead: Dawn Tew, [email protected]

http://www.ibm.com/isv/startup/smartcamp